Netflix’s plans to crack down on password sharing have been boosted by the Intellectual Property Office’s (IPO) announcement that the distribution of logins may be illegal.
“There are a range of provisions in criminal and civil law which may be applicable in the case of password sharing… these provisions may include breach of contractual terms, fraud or secondary copyright infringement, depending on the circumstances,” the IPO stated.
Netflix announced plans to crackdown on account sharing from 2023 following on from trials that increased subscription fees for accounts used in multiple homes.
The Silicon Valley-based company hopes to “make it easy” for account borrowers to switch to new accounts and for families to create ‘sub-accounts’ that would pay towards the subscription.
According to research from Digital i, a quarter of UK Netflix subscribers are believed to share account passwords.
Netflix has never taken or indicated plans to take legal action against password sharers, but the announcement may strengthen its desire to wipe out freeloaders.
The US streaming service has had a tumultuous post-pandemic experience, with subscriber counts shrinking and a mixed response to its ad-based subscription service.
Yet as bootlegging technology improves and the number of streaming services continues to multiply, customers may be tempted to return to illegal pirating habits.
As for password sharing, there has been no indication from police services that any action would be taken following a policy change.
Netflix’s share price has sunk over 50% year to date, putting it in the top 25 for worst-performing S&P 500 constituents.